Export restrictions fail to curb rising raw jute prices
Business Report :
The government’s decision to restrict raw jute exports, intended to stabilize domestic prices and ensure supply for local mills, has failed to deliver the expected results even after two months. Instead, the move appears to have backfired, with premium-grade jute prices climbing further in major producing districts.
The Commerce Ministry imposed the restriction in September following recommendations from the Textiles and Jute Ministry, requiring exporters to obtain prior approval for shipments. The measure aimed to make fibre more affordable for mills, but traders say it has achieved the opposite effect.
High-quality jute, which sold for around Tk 4,000 per maund in September, is now trading at about Tk 4,300, said Farhad Ahmed Akand, former chairman of the Bangladesh Jute Association. In Faridpur, the country’s largest producing district, the Department of Agricultural Marketing (DAM) reported premium jute selling between Tk 4,000 and Tk 4,300 per maund Tk 100 to Tk 300 higher than before the restriction.
Officials attribute the increase to lower output this year. According to Bangladesh Bureau of Statistics (BBS) data, jute production fell 6.5 percent year-on-year to 89.5 lakh bales in FY25 due to reduced acreage and bad weather. “Due to low production, supply is limited despite steady demand,” said Shahadat Hossain, senior market officer at Faridpur DAM. Farmers also faced low yields. Moktar Molla, president of the Faridpur District Jute Farmers Association, said, “Cultivating one bigha costs Tk 40,000 to Tk 42,000. We harvested only 5-6 maunds per bigha instead of the usual 10. After paying wages, many farmers are barely covering costs.”
Medium-quality jute, used for sacks and packaging, has declined slightly to Tk 3,600-Tk 3,700 per maund. Md Omar Faruk Talukdar, assistant director at the Faridpur Jute Department, said high-quality fibre goes to export-oriented mills, while medium grades serve local industries.
Traders also blame hoarding for keeping prices high. “Hoarders are buying large quantities of jute and storing them to sell later at higher prices,” alleged Akand.
Talukdar said limited manpower makes it difficult to act promptly. He added that while lower production has pushed up demand, the restriction did prevent prices from spiralling completely. “Without export restrictions, prices could have reached Tk 5,500 per maund,” he told The New Nation.
Raw jute exports have declined since the restriction. However, between July and October of FY26, overall exports of jute and jute goods grew 4.7 percent year-on-year to $277 million, driven mainly by yarn and sacks. The rebound follows FY25, when exports fell to $820 million, the lowest in six years.
Farmers like Nab Kumar Kund of Magura Sadar said, “Prices have increased mainly due to reduced production. We want prices high enough to encourage cultivation, but the government should ensure stability.”